mam98031 • Volunteer Community Member • Buyer/Seller since 1999
@whybuynewguy wrote:There is still no access to the sales tax information eBay collected from 1-1-19 to 11-3-19. There was some "spotty reporting" by eBay earlier in the year...but stopped completely in March 1-Nov 3.
The PayPal business report only starts to pick up the tax reporting again from Nov. 4th 2019. That's when Ebay invoices started to show the tax collected again on the ebay invoices.
Remember what we all were told...you don't have to do anything....we (ebay) will handle it).
Basically sellers, eBay because of the huge "fail" in their reporting, has all sellers because of "gross" 1099K revenue reporting will have to pay income taxes on the taxes Ebay collected sales tax...that we never touched a dollar because we cannot get the information.
I'm sorry the "later this year" answer in the Town Hall Meet today to when they will have the reporting is not acceptable. The IRS is not going to accept "later this year" to pay our taxes.
Then I have to ask the questions...did eBay collect the monies from our buyers and never paid the states????
We need answers...and answers now. This is a huge fail!
If I am missing something here...please...I am all ears!
All legitimate complaints to be sure. But you do not have to take on the burden of trying to figure all this out. The ONLY state you need to be concerned with is your own. So that will lessen your burden a great deal.
Since Florida does not have an MFL, you should have been collecting your state sales tax as appropriate for the entire year. All those other states is on Ebay, not you.
There are NO reports you need to file for the other states. You just need to do your own.
@lotzofuniquegoodies wrote:
Only the 2 cents of an outside observer (Canadian Seller) but why from the get go eBay never bothered to show the math on a packing slip so everyone would be in the loop instead of generating a hodge podge of reports to figure out the math. A packing slip that shows the applicable State, applied tax rate (%) and that it was collected on behalf of the seller by eBay. When I check on the Canadian side I see several different displays(versions) between eBay Sellers Hub, Shippo & PayPal and then there is the other nuisance that these displays have changed several times since this was first dropped on sellers.
-Lotz
PS. Is it still applying these taxes willy nilly when some items are exempt or at different rates as reported my many buyers/sellers and as per the legal websites involved?
I don't know about using the packing slips. I've never used Ebay's packing slip. I don't know why that would have anything to do with accounting for your business transactions.
All sellers should track their own sales. Any reports that you can get from Ebay or PP should be reports used to cross check your OWN records with.
As for whether or not something is or isn't taxable in any given state. Ebay accounts for that by 9 digit zip codes [which not all buyers put in their ship to addresses, but they should] and by the category in which the item being purchased is in. So for example in some states coins are not taxable. But if the coins are listing in collectibles, it will be taxable on Ebay. The tax system in Ebay is not driven by the item being sold, but the category in which it is being sold in. So Ebay needs to better educate both buyers and sellers on this fact.
Most times when someone things that Ebay is charging taxes "willy nilly" it is due to what I described above.
@whybuynewguy wrote:Agreed...but you have to have a report that show you what Ebay collected....they never started reporting until Nov 4th, 2019.
That is PP that shows the amounts in their reports as of Nov. 4th.
Ebay has a report on the seller hub in the Order tab that can be downloaded. It gives all the details of a transaction. The bad part is you need to remember to download it every 90 days [not 3 months, but 90 days] and save it. It does not go back further than that yet. Later this year we are suppose to get better reports, but only time will tell.
I must be missing something....PayPal reported all GROSS revenues through their 1099K which included the sales taxes ebay collected.
NO. PP does NOT report "revenue" to the IRS via a 1099. They report Gross RECEIPTS. Receipts and revenues are NOT the same thing. From the number reported on the 1099 you need to deduct sales tax, shipping and refunds. You will then arrive at your Gross Sales. It has ALWAYS been this way. If you haven't done that in previous years, you have likely over claimed your income.
If sellers do not have reporting from ebay of what they collected...how can sellers deduct from the PayPal 1099K report to reduce their reported revenues?
The PP reports will be enough for what has happened within PP. The detailed reports are excellent. The PP reports are not going to tell you what Ebay collected for sales tax in any given state prior to November 4th. And you really don't need to be concerned with it unless it was for your state. You are required to make sales reports to any other state other than your own unless you have a business nexus in multiple states.
It is exactly like refunds....PayPal only shows revenues on their 1099K- no refunds.
PP shows RECEIPTS Not "revenues".
You have to pick up the refunds on their reports to reduce the 1099K reporting from your revenues or you are overstating sales and are pay taxes on the refunded sales.
Yes, you reduce the receipts by sales tax collected via PP and any refunds you made.
@whybuynewguy wrote:Agreed...but you have to have a report that show you what Ebay collected....they never started reporting until Nov 4th, 2019.
Yes if you are in MP and Ebay issued you a 1099. But if that didn't happen, then you just need to be concerned with the state or states you are operating your business in.
@whybuynewguy wrote:No...we are not managed payments. Our 1099k comes from PayPal.
Good, that makes things so much easier for you.
As I'm sure you are aware, your state is NOT a state with an MFL [marketplace facilitator law], so for you this is easy. You don't need to be concerned with what Ebay collected and remitted to other states BEFORE they started having PP process the payment for sales tax on November 4th. Or unless you have a business nexus in a state that has an MFL in place that requires you to file with that state.
You can just use your PP reports to do your taxes and report your sales to your state and the IRS. The PP reports do have the amounts of sales tax they collected and remitted to Ebay, so all that info is there.
You do not have to be concerned with what Ebay did prior to Nov. 4th as you have no reporting requirement with your state, any other state or the IRS for those amounts of sales tax collected by Ebay.
